Consider Schedule #1 in the Aggregate Demand and Aggregate Supply

question 150

Multiple Choice

Consider schedule #1 in the aggregate demand and aggregate supply table given below.The equilibrium output and price level for the economy described on this schedule are:
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Table 10.1
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$$\begin{array} { c c c c c } \begin{array} { c } \text { Quantity of } \\\text { Aggregate Output } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Price } \\\text { Level }\end{array} &\#1& \begin{array} { c } \text { Quantity of } \\\text { Aggregate Output Supplied } \\\# 2\end{array} & \# 3 \\\hline \$ 7.0 & 110 & \$ 5.0 & \$ 6.0 & \$ 4.0 \\6.5 & 120 & 5.5 & 6.5 & 4.5 \\6.0 & 130 & 6.0 & 7.0 & 5.0 \\5.5 & 140 & 6.5 & 7.5 & 5.5 \\5.0 & 150 & 7.0 & 8.0 & 6.0\end{array}$$
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• A)$7.0 and 110,respectively.
• B)$6.5 and 120,respectively.
• C)$6.0 and 130,respectively.
• D)$5.5 and 140,respectively.
• E)$5.0 and 150,respectively.

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Definitions:

Net Cash Flow

The amount of cash that is generated or lost over a specific period of time, after accounting for all cash inflows and outflows.

Operating Activities

Day-to-day activities of a company involved in producing and selling its products or services, which are the main source of revenue for the business.

Accounts Payable

Liabilities owed by a business to its creditors for goods and services purchased on credit.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.